July 22, 2026 (MLN): The Pakistan Credit Rating Agency (PACRA) has upgraded the long-term entity rating of Askari Bank Limited (PSX:AKBL) to AAA from AA+, while maintaining the short-term rating at A1+ with a stable outlook.
PACRA attributed the upgrade to the Bank's sustained financial performance, robust capitalization, and strengthened balance sheet, complemented by strategic support from its ownership structure.
Fauji Foundation (FF) is the Bank's ultimate parent and exercises direct control pursuant to an agreement executed between FF and Fauji Fertilizer Company.
The agency described FF as a growth-driven Social Hybrid Enterprise and the largest social entity in Pakistan, with a diversified portfolio spanning fertilizer, cement, food, power generation, oil and gas exploration, LPG marketing, marine terminals, financial services, aviation, and employment services.
This association, PACRA noted, gives the Bank key strategic advantages including enhanced market reach, stronger customer confidence, and access to a stable, diversified deposit base.
Beginning FY27, FF has lined up multiple acquisitions, most notably Askari General Insurance and Askari Life Insurance, with a few other ventures also in the pipeline, moves expected to expand AKBL's presence across the country's financial spectrum and unlock cross-sell opportunities.
Under new leadership, the Bank has adopted a more growth-oriented strategy, with increased focus on service quality, deepening customer relationships, and expanding market presence.
During 2025, Askari Bank delivered strong financial performance despite a challenging environment marked by compressed interest margins, supported by its solid franchise and continued emphasis on low-cost deposit mobilization. Expanding outreach, backed by digital onboarding and transaction banking initiatives, further strengthened its deposit franchise.
The Bank's mobile banking platform, which has crossed one million users, offers digital onboarding, cardless cash withdrawals, AI-enabled advisory features, and enhanced customer engagement tools, alongside an industry-first in-app calling feature introduced during the year to boost customer security.
AKBL's profit before tax rose 19.7% to Rs53.3bn during 2025 (CY24: Rs44.5bn), while net profit increased to Rs22.8bn (CY24: Rs21bn), with growth partially offset by a higher effective tax charge.
Shareholders' equity expanded 24.8% to Rs151.7bn (CY24: Rs121.6bn), and total assets grew 15.9% to Rs2,895.0bn (CY24: Rs2,498.4bn).
Current accounts grew 29%, reflecting improved deposit mobilization and a stable funding profile, while the Bank's Capital Adequacy Ratio stood at 21.59% (CY24: 21.40%), providing an ample buffer for future growth and shock absorption.
Going forward, the Bank intends to strengthen its footprint in the digital space, network presence, trade business, and cross-sell opportunities.
PACRA said the Bank remains committed to maintaining capital ratios well above prescribed thresholds for better risk absorption capacity, adding that the ratings depend on the Bank's ability to sustain its competitive position, with prudent management of funding costs and maintenance of asset quality remaining essential going forward.